|
Let us,
of both races in the south, throw off the shackles of racial
and sectional prejudice, and rise above the clouds
of ignorance,
narrowness and selfishness. ... The Negro can
afford to be wronged;
the white man cannot afford to wrong him. If a
white man steals a
Negro’s ballot, it is the white man who is
permanently injured. Physical
death comes to the one Negro lynched in a county,
but death of the morals,
death of the soul, comes to the thousands
responsible for the lynching. ...
There is no escape through law of man or God,
from the inevitable:
The laws of changeless
Justice, bind oppressor with oppressed;
and close as sin and suffering joined,
we march to fate abreast.
Let us
pray God for a blotting out of sectional differences and racial
animosities; a determination to administer
absolute Justice; and a willing
obedience to the mandates of law. This, coupled
with our material prosperity
will bring our beloved South, a new heaven and a
new earth.
Booker T. Washington, speeches, 1895 & 1896
We are confronted primarily with a moral
issue. It is as old as the Scriptures
and as clear as the American Constitution. The heart of the question is
whether
all Americans are to be afforded equal rights and equal opportunities.
... One
hundred years of delay have passed since President Lincoln freed the
slaves,
yet their heirs, their grandsons, are not fully free. They are not yet
freed from
the bonds of injustice. They are not yet free from social and economic
oppression.
And this Nation, for all its hopes and all its boasts, will not be fully
free until
all its citizens are free.
We preach freedom around the world, and we
mean it, and we cherish our freedom
here at home; but are we to say to the world, and much more importantly,
to each
other, that this is a land of the free except for the Negroes; that we
have no second-
class citizens except for the Negroes; that we have no class or caste
system, no
ghettoes, no master race, except with respect to Negroes ? The time
has come for
this nation to fulfill its promise. Those who do nothing are inviting
shame as well
as violence. Those who act boldly are recognising right as well as
reality. But
legislation cannot solve this problem alone. It must be solved in the
homes of every
American in every community across our country.
President John F.
Kennedy, Civil Rights Message, 11 June 1963
Since the end of World War II, war criminals
and other human rights abusers have
lived in a golden age of impunity, and the international community has
shown little courage or moral will to put a stop to crimes against
humanity.
Tony Freemantle, Crying for Justice,
A Houston Chronicle Special Report
Justice is conscience,
not a personal conscience but the conscience of the whole
of humanity. Those who clearly recognise the
voice of their own conscience,
usually recognise also the voice of Justice.
Alexander Solzhenitsyn,
The Struggle Intensifies, October 1967
Justice is justly represented blind, because
she sees no difference in the parties
concerned. She has but one scale and weight, for rich and poor, great
and small.
Her sentence is not guided by the person, but the cause. Impartiality
is the
life of justice, as justice is that of government.
William Penn, 1644 – 1712,
Quaker, founder of Pennsylvania
At best, man is the noblest of the animals;
separated from Law and Justice, he is the worst.
Aristotle, 384 – 322 BC, Greek Philosopher
Justice delayed is
Justice denied.
William Gladstone, 1809 –
1898, British Prime Minister

Statue of Justice
I have included a number
of quotations on justice above, because, I am convinced that, as with the
other great virtues and principles of civilisation, we are in danger of
losing sight of its meaning and value. As a child I often gazed at the
statues and portraits of Justice depicted in Arthur Mee’s Children’s
Encyclopaedia, with some awe and admiration. Justice was usually
represented as woman, a woman of great beauty, purity and strength of
character. The Quaker William Penn who suffered his own share of
injustice in both England and America, stated, Justice is mostly pictured
blind or blindfolded, to emphasize her complete impartiality. But today
our leaders cloud the concept of justice with ideas of national security,
political expediency, and an array of legal loopholes – as if Justice was
served by making the letter of the law rather than its spirit, the supreme
factor.

William Penn, Quaker,
Pennsylvania founder. “Justice is rightly represented
blind. She has but one scale … Her sentence is not
guided by the person, but
the cause.”

Demosthenes, “the love
of truth and justice within us, is the image
of God”
The concept of justice is
often linked closely with that of truth. Demosthenes said that what we
have in us of the image of God, is the love of truth and justice. Truth
sets us free, said Jesus, and where truth is suppressed, freedom dies. No
wonder the Nazi Propaganda Minister, Joseph Goebbels said, “It is
vitally important for the State to use all of its powers to repress
dissent; for Truth is the mortal enemy of the Lie, and thus by extension,
the Truth is the greatest enemy of the State”. It would seem in this
the beginning of the 21st century, that several governments and
their state-appointed authorities, are following Goebbels’ dictum, and
pressuring the media to conform, especially in matters relating to war and
justice. And as some of the most outspoken opponents of what is really
going on inside the corridors of power, and in the conflict areas of
Chechnya, Burma, the Sudan, Iraq and Afghanistan, have discovered, George
Orwell’s statement remains true today : “During times of universal
deceit, telling the truth becomes a revolutionary act”.

Joseph Goebbels, the
father of modern propaganda

George Orwell, author of
1984, and Animal Farm. “During times of universal
deceit, telling the truth becomes a revolutionary act.”
Albert Einstein, the great
physicist and scientist, said, “I am firmly convinced that the
passionate will for justice and truth has done more to improve the human
condition than calculating political shrewdness which in the long run only
breeds general mistrust”.

Albert Einstein, “”… the
passionate will for justice and truth …
Genocide and Slaughter
However depressing and
sobering it might be, I think it would be salutary to remind ourselves how
many innocent persons have been murdered within the last hundred years, in
civil wars, and purges, by military death squads, under despotic regimes,
and from brutal inhumane ethnic cleansing. (The figures in the table
below are estimates from knowledgeable sources.)
Estimates of deaths caused
by internal civil wars, genocide and ethnic cleansing
|
Country and cause |
Dates |
Deaths |
|
|
|
|
|
Russia
Bolshevik revolution |
1917 - 1921 |
5m to 9,000,000 |
|
China
communist / nationalist conflict
|
1928 – 1949 |
1.3m to 6,100,000 |
|
Congo
central / eastern tribal wars |
1991 – 2004 |
up to 4,600,000 |
|
Bangladesh
civil war (with W. Pakistan) |
1971 |
up to 3,000,000 |
|
Cambodia
Khmer Rouge / Pol Pot regime |
1975 - 1979 |
1.7m to 2,300,000 |
|
Afghanistan
Russian and American invasions |
1979 – 2006 |
1.6m to 2,200,000 |
|
Mexico
revolution |
1910 - 1920 |
up to 2,000,000 |
|
Ethiopia
civil war |
1974 - 1991 |
0.3m to 1.400,000 |
|
Indonesia
communist suppression |
1965 - 1966 |
up to 1,250,000 |
|
Sudan
Darfur and civil war with south |
1983 – 2006 |
up to 1,150,000 |
|
Nigeria
Biafra cessation / civil war |
1967 – 1970 |
around 1,000.000 |
|
Mozambique
post independence civil war |
1976 – 1993 |
0.9m to 1,000,000 |
|
Algeria
independence war with France |
1954 - 1962 |
up to 1,000,000 |
|
Spain
Spanish civil war |
1936 - 1939 |
0.35m to 1,000,000 |
|
Rwanda
Tutsi – Hutu genocide |
1994 |
estimated 930,000 |
|
Uganda
Idi Amin rule and civil war |
1971 – 1986 |
around 800,000 |
|
Chechnya
Russian suppression of secession |
1994 – 2006 |
Over 600,000 |
|
Somalia civil
war and ethnic strife |
1988 – 2006 |
estimated 550,000 |
|
Angola
civil war and S. African militias |
1975 – 2002 |
around 500,000 |
|
Burundi
civil war and genocide |
1972 |
Over 300,000 |
|
Bosnia
civil war and ethnic cleansing |
1992 - 1995 |
Over 280,000 |
|
East Timor
Indonesia army militias attacks |
1975 - 1995 |
estimated 250,000 |
|
Liberia
civil war and warlords |
1989 – 2001 |
Over 220,000 |
|
Sierra Leone
civil and tribal war |
1991 – 2000 |
Over 200,000 |
|
Guatemala
right wing militias / death squads |
1960 - 1996 |
Over 200,000 |
|
Lebanon
civil wars & Arab-Israeli conflicts |
1975 - 2006 |
around 200,000 |
|
Yemen
civil wars |
1962 - 1984 |
around 190,000 |
|
Sri Lanka
Sinhalese – Tamil civil war |
1983 - 2006 |
up to 100,000 |
|
|
|
|
The appalling figures
underscore the priceless importance of justice, when platitudes or appeals
to conscience evoke little response. The incomplete list reveals over 42
million brutal deaths, not from international wars, but from internal
strife, tribal battles, repression, proxy-invasions, and ethnic
cleansing. And the list does not include the tens of thousands murdered
and tortured in El Salvador, Nicaragua, Chile, or other south and central
American states during periods of military rule or of foreign financed
military death squads.

Contra soldiers in
Nicaragua

Conflict in Somalia

Soldiers fighting in East
Timor

One of countless victims
in Darfur

Sad evidence of Darfur
atrocities
The brutality and utter
inhumanity of most of these killings beggars beliefs. I have been
sickened to read and to hear firsthand, accounts of the depraved behaviour.
How could men made in the image of God descend to such depravity? Khmer
Rouge soldiers regularly tortured children, women, old men, priests, and
civilians who were innocent of any crime and no threat to their murderous
regime. The torture and murder was conducted with delight and laughter.
Family members were forced to kill each other or face similar torture and
death (which they usually did anyway). Whether Pol Pot’s troops, or
brutal militia thugs in Darfur, Sudan, West Africa, Central Africa, Latin
America, Indonesia, Nazi Germany, the Ku Klux Klan, Apartheid South
Africa, or in the jails and torture chambers of the KGB, communist China,
North Korea, or even Abu Ghraib or Guantanamo Bay, we can only ask what
made otherwise normal young men become such demonized monsters to treat
fellow human beings as they have.

Graves of village people
massacred in Mai Lai, Vietnam

Lt William Caley of Mai
Lai, pardoned by President Nixon.

Dog torture of prisoners
in Abu Ghraib
Their political and military masters
thought they were untouchable. “We can kill anybody for anything”,
said a Punjabi Captain leading the slaughter of Bangladeshis in 1971,
“We are accountable to no-one”. A young ‘chlop’ or Khmer Rouge guard
told his victims, “We gain nothing if we keep you. You are worth
nothing to us”. Such people have lost their humanity, killed their own
souls. An ordinary man in Cambodia, Soeum Himm, a former schoolteacher,
when about to be murdered by the Khmer Rouge, told his family: “If
there is no love, justice can’t exist. Don’t try to argue for justice
with people who don’t understand the principle of love. They’ll never
listen to you.”
How many of those
responsible for these millions of deaths, were ever brought to justice?
Not the rulers of Lenin’s and Stalin’s USSR, or the officials of Mao’s
regime in China, not the Congolese or Ethiopian warlords, and few of the
leaders of the Khmer Rouge in Cambodia, or of the Indonesian military in
East Timor. Some of the world’s worst criminals were allowed to grow old
and die of natural causes, - such as Joseph Stalin, Pol Pot, and Idi Amin.
This is one of many reasons I believe that there has to be a final day of
judgment before a supreme, impartial but all-knowing Judge. Attempts to
try the war criminals and despots of Rwanda, Burundi, Bosnia and Chile,
have had very limited success.

Joseph Stalin

Pap doc and Baby Doc, of
Haiti

Idi Amin of Uganda
Human justice systems appear to be
incapable of handling cases of such enormous wickedness and cruelty. In
Northern Ireland, the British government appears to be willing to let
confessed murderers go free in order to achieve agreements on a political
settlement. Former President Jimmy Carter said that perpetrators of war
crimes and human rights abuses should be punished; but often the ones who
are accused, are so powerful, they won’t accept the tribunal or the new
regime, unless they receive amnesty. But even bastions of democracy
protect war criminals in their own ranks. Lt. William Caley the leader of
the My Lai massacre in Vietnam was cosseted by the U.S. Army and pardoned
once the media outcry had died down. A former instigator and organizer of
contra militias and death squads in Central America, Elliott Abrams, was
an assistant secretary for Human Rights (!), and President of an Ethics
and Public Policy Center. Abrams was convicted of lying to congress during
the contra arms scandal. He is presently occupying a high office in the
Bush administration.

Elliott Abrams. Organiser
of contra militias and death squads in Central America, who lied to
Congress during the arms for Contra Investigations,
yet was made an Assistant Secretary for Human Rights and President of an
Ethics and Public Policy Center, by the Bush Administration.
The one country that has
led the world in exposing the truth and having perpetrators confess
publicly to their crimes is South Africa where the
indominatable Archbishop Desmond Tutu led the Peace and Reconciliation
mission. It had been established in 1994, and the public hearings began
in 1996. Those who had committed atrocities had to apply to the Amnesty
Committee of the truth commission to escape prosecution. Provided they
confessed to their crime, and could prove it was perpetrated to further
the aims of a political organisation, and if it was not considered by the
committee to be egregrious, amnesty was likely to be granted [Their
use of the word ‘egregrious’ surprised me. The majority of the apartheid
crimes were reprehensible. How the commission could find some
extraordinarily so, is difficult to imagine.]. Some
in South Africa felt that amnesty was a travesty, particularly families of
murdered civil rights leaders and anti-apartheid protestors. Steve Biko’s
widow was one of these. After what passed for an investigation into his
death, the judge had concluded that no-one was responsible, though he had
died from massive head injuries and was perfectly healthy when the police
took him into custody. Nomtsikelelo Biko said, “We all want
reconciliation, but it must come with something. It must come with
justice, and if not, then there must be some form of compensation”.
The Commission hearings,
the telling of the truth, began slowly with victims coming forward, and
their tormentors skulking behind walls of silence and lies, wrote Tony
Freemantle. The focus was first on the victims. A sobered nation was
riveted by harrowing tales of torture and murder at the hands of a racist
minority government that had become increasingly brutal while its grip on
power weakened. It was a remarkable catharsis for a people who had cried
in silence all those years, nursing the bitter cocktail of pain and
injustice. By the fall of 96, the trickle of truth became a flood,
exposing the highest, darkest corners of the apartheid system to light of
public scrutiny. Desmond Tutu broke down in tears at one point. The
dreadful accounts of callous inhumanity and brutality were at times more
than he could bear. But then he realized that he could not chair the
hearings competently if he allowed his own feelings to be expressed in
that way. So he composed himself, and thereafter wept only in private.

Archbishop Desmond Tutu who
bravely chaired the Peace and
Reconciliation Commission
after the fall of the Apartheid regime

Steve Biko, murdered by
South African security police. His life was the subject of the film,
Cry Freedom.
Tutu and his vice-chairman
Alex Boraine, managed the commission with able, steady hands, eliciting
praise and high marks from observers. Tutu had made it clear that he
would conduct an impartial enquiry into atrocities on both sides of the
struggle, - those committed by both the apartheid government and by the
ANC. Despite pressure from ANC members of the new government, the
Archbishop stuck to that position. Ultimately, many South Africans came
to recognize, the real culprits of the criminality, cruelty and violence,
were the architects, supporters and followers of the whole apartheid
system, - the institutionalized policy of racial separation which the
United Nations branded as a crime against humanity. [Tony
Freemantle, Light shines at last into apartheid’s darkest corners,
Houston Chronicle, 1966] The
same, I suppose, could be said of those who established and supported the
Nazi regime in Germany, the totalitarian communist systems of Russia and
China; and those who designed or were complicit in the police states and
right wing military regimes of Latin America, Myanmar, and the Philippines
during the worst excesses of the Presidency of Ferdinand Marcos. In
Africa, tribal enmities were a driving force behind atrocities in Rwanda,
Burundi, Nigeria, Liberia and the Congo. Other despotic rules were more
the product of demonic individuals who managed to seize power, - men like
Papa Doc in Haiti, Idi Amin in Uganda and Pol Pot in Cambodia, not one of
which ever faced a trial for their many hideous crimes against humanity.
But now we will turn from
a consideration of genocide and brutal injustices, to the need for justice
on matters of civil crime, financial embezzlement, and corporate
mendacity.
|
An entire system built on greed
I
recall a comment by Prime Minister Edward Heath in the 1970’s when
referring to the behaviour and performance
of some banking establishment located in the Caribbean. He stated
that it was “the unacceptable face of capitalism”. I am sure
that most observers agreed with him, but the statement was challenged
by his Conservative colleague Enoch Powell, who claimed it was a
remarkable statement by one not given to remarkable statements.
Powell’s contention appeared to be that the bank in question was
simply doing what banks do to make money. The bank may have been
particularly ruthless or its profits rather excessive, but what it did
was not strictly illegal.
Over thirty years later the attitudes of many right wing capitalists
and economists to extortionate and opportunist financial greed and
embezzlement, had not changed. William Anderson of the Ludwig von
Miseg Institute, claimed that Kenneth Lay, former Chairman and CEO of
Enron, which he puffed to a false value, and led into a multi-billion
dollar collapse, while enriching himself and his buddies, - had done
nothing wrong. The Houston jury however, thought differently, finding
him guilty of 6 counts of fraud and conspiracy. A British bank
official who was recently charged with embezzlement of millions
claimed that though technically guilty, he “never intended to profit
personally from the actions”. Has any senior finance executive ever
been so altruistic?
The anecdotes illustrate a serious and fundamental problem with our
capitalist system. The whole system is built on greed and the
promotion of greed. We should not therefore be surprised when the
Chief Executives of large corporations award themselves obscene
salaries, benefits, pensions and golden handshakes. Their whole
profession is geared to maximizing large profits and generous returns
for shareholders. So they simply apply the same philosophy to their
own remuneration.
Of
course, only a minority of big businessmen and corporate executives
yield to the enormous financial temptations they face. I admire every
one who has maintained his integrity. But my contention is that the
system and its prevailing climate encourage avarice, exploitation, and
opportunist robbery. Power corrupts, - and that adage is as true for
big business as it is for big government. Banks today display little
concern for customers and instead, grab every opportunity to charge
clients for services that their predecessors considered part of the
job.
From time to time we hear serious responsible persons who themselves
are pillars of the financial system, call for restraint and
appreciation of their wider public duty, on the part of those who
operate and control our investment houses and corporations. Mostly
those pleas go unheeded. So we have witnessed a succession of
financial scandals involving embezzlement, asset-stripping, and
insider trading deals that have robbed investors and pensioners of
millions upon millions. Enron, and the Savings and Loan frauds, may
have been the worst, but there were many others, like WorldCom,
Parmalat, BCCI, Banco Ambrosio, Rite Aid, Vivendi Universal, Tyco
Intl. Ltd., CMS Energy, Cendant, Adelphi Communications, Merck & Co.,
General Electric Corp., Waste Management, Viacom, Arthur Andersen,
Duke Energy, and possible cases pending against the great Halliburton,
and the Disney Corporation. Punitive actions are minimal as the whole
US establishment, political, economic and judicial, are tied into
corporate America.
What has astonished me is the total lack of remorse on the part of the
guilty, and their pleas for clemency on the spurious grounds that they
really never intended to do anything wrong, they were good family men,
or that their crimes were victimless. The few jail terms handed out
were pitiful. Typical was an S & L chief receiving a 3 and ½ year
sentence for theft of $ 8.7 million. What bank robber could hope for
such leniency? George Bush senior’s son Neil, another S & L manager,
did not even have to go to jail. He managed to negotiate an out of
court settlement of a mere $ 50,000 for a scandal that cost American
taxpayers $ 500 billion by some accounts.
I recall the sentencing of some Directors of the
Guinness / Distillers’ Company in UK for their fraudulent and
illicit actions in 1990. One of the chief culprits was Ernest
Saunders (originally Schleyer) who was found guilty of fraud
conspiracy, false accounting and theft, in relation to a dishonest
share support operation. He had also passed $ 100 million to an
American, Ivan Boesky, to invest, shortly before Boesky himself was
prosecuted and imprisoned. Saunders received a five year sentence
which was reduced to two and a half years on appeal. But his family
promptly mounted a chorus of protests at the imprisonment of an ‘old
man who was suffering from Alzheimer’s disease’. Astonishingly, the
authorities responded by releasing him from jail after serving only
10 months in an open prison. Saunders immediately made a
remarkable recovery, and when questioned about it afterwards,
shrugged it off as a ‘wrong diagnosis’, and the result of a cocktail
of sleeping pills and tranquilisers. I wondered then, what other
criminal would have received such lenient treatment? And why,
after his remarkable recovery, was he not required to serve the
remaining part of the sentence?
Robert Maxwell, (original name Jan Ludvik Hoch),
that mysterious man from Czechoslovakia, who came to Britain in
1940, served a period in the Army, and went on to become a
publishing mogul and a Labour Member of Parliament, robbed 30,000 of
his employees in the Mirror Group of hundreds of millions of pounds
of their pension money. He died mysteriously in November 1991,
apparently falling into the sea at night from his luxury yacht. The
government had to pay out £ 100 million to refund the pensions, and
a further £ 276 million was obtained from City institutions and the
remnants of Maxwell’s media group. As mentioned elsewhere, my
sister-in-law used to assist him in his annual audits of a company
he owned for a while in Edinburgh.
I recall the
old Aberdeen Savings Bank that was set up by thrifty Scots as a kind
of mutual bank that was owned by its depositors. My mother was among
thousands of low-income Scots who had savings accounts in that bank.
The name was later changed to the “Trustee Savings Bank” – surely as
events transpired, a total contradiction in terms. Mrs Thatcher’s
greedy city financiers got their covetous eyes on the TSB and wanted
it “privatized”. The Scottish High Court ruled such a move illegal as
that bank was “owned by its depositors”. Not to be out-done, the
sharks and vultures of the city of London had the case taken before
the High court in London. They were supported in this by the TSB
“trustees” who stuffed meetings full of their own staff and did all in
their power to prevent genuine depositors from participating. Those
known to have strong views on the subject, or to be articulate
spokespersons were marked for particular discrimination. So the
English High Court ruled in favour of the
privatization deal. The TSB deceitfully promised depositors that the
bank would remain a Scottish bank with its headquarters in Edinburgh.
It took them only 2 years to renege on that promise. |
I record the assortment of
major financial crimes above to illustrate what I see as a basic weakness
of the whole capitalist system. It is founded on human greed and
avarice. The modern day Midas’s, Shylock’s and Scrooge’s, though they
wear immaculate business suits and conform to cultural norms, possess
rotten, covetous hearts that often lead them into opportunist crimes of
fraud, embezzlement and exploitation. Fortunately not all businessmen are
like that. Some very successful leaders in finance and industry have been
able to resist temptation and to place limits on their appetites for
greater profits. But sadly, some operators have fouled their corporate
nests and robbed thousands of investors, customers and/or employees in the
process. My thesis is that we inflame the greed of corporate executives
by demanding them to produce higher and higher profits, and by praising
and honouring the ones who excel. Corporate and financial success is not
measured by the production of affordable goods, by the creation of
sustainable jobs paying reasonable wages, or by passing benefits on to
customers in the form of lower charges or lesser interest. No, it is
mostly seen in the narrow context of huge profits.
I see a parallel (if I may
express an older generation’s view), in advertising, in film and video and
music, and in the media’s shameless use of sensational sex and sex images,
that just have to have an impact on our teens and pre-teens, when there is
little balancing effort to promote values of decency and modesty,
restraint or discipline. So be it in a free society I guess. But why
then should we be surprised when teenage pregnancies reach an all time
high, and when venereal disease and aids are rampant, when couples put
their own pleasure and indulgence before the welfare of their children or
the hurt caused to injured parties. In both the business and the
entertainment world, passions are fed that will inevitably result in
excessively selfish behaviour. My own view which many will no doubt
consider to be narrow or old-fashioned, is that we need to get back to
reminding ourselves of the bedrock importance to individuals and society
of virtues like honesty, integrity, truthfulness, loyalty, self-control,
and purity, - to say nothing of courtesy, consideration, kindness and
goodness. We should also give our children the opportunity to learn these
beautiful qualities at school and in the home, through appropriate
literature, poetry, and – dare I say it, from the Bible.
As wealth has been amassed
the financial assets of banks have increased, opportunities afforded to
global businesses and corporations have likewise expanded. This has
opened the door to theft, manipulation and asset-stripping, on scales that
would have been impossible a few decades ago. Corporate thieves and
cheating bankers have grasped the opportunities presented with alacrity.
These robbers use no guns or balaclavas, neither do they come from the
ranks of the disadvantaged or from conventional criminal elements in
society. They wear business suits and ride in chauffeur-driven
limousines. They lecture to students of business and economics in the
prestigious universities. They advise our government leaders on economic
and financial policy. They present themselves as society’s benefactors
and wealth-creators, rather than the money manipulators they are. And
until their crimes are apparent, they are lauded and revered in the pages
of the Wall street Journal and the Financial Times. Many were regular
guests at the White House or in 10 Downing Street. Some British Cabinet
Ministers, European Presidents or Prime Ministers, and U.S. Senators and
Congressmen, have been their bedfellows, or willing participants in their
fraudulent schemes.
|
Embezzlers, Fraudsters,
Swindlers, and those guilty of mismanagement on a colossal scale
The end of the 20th century brought
globalisation of financial markets which grew in the volume and
complexity of their business. It also saw increased amalgamation of
banks and financial institutions into huge organisations for the
management and utilisation of money provided by savers, businesses,
and government. These immense institutions for handling and
manipulating funds provided unprecedented opportunity to unscrupulous,
greed-driven, and arrogant managers or senior officials. Colossal
sums were diverted, stolen, and embezzled, through innumerable
sophisticated and fraudulent schemes. Other vast amounts of people’s
money were lost by sheer incompetence or arrogant obstinance displayed
by financial traders and government ministers. Below are some of the
rogues in the gallery of major thieves and bunglers. Readers may well
note how few of them received any meaningful punishment, and how many
were left free to enjoy their ill-gotten gains, or to be applauded
despite their disastrous performances.
Roberto Calvi of Banco Ambrosio was found hanging
under London Bridge, his clothing stuffed with bricks, in June 1982.
Some $1.2 billion was missing from the bank’s subsidiaries, (including
the Vatican Bank whose head, Archbishop Paul C. Marcinkus was also a
Director of Ambrosio). Amazingly, a British jury delivered a verdict
of suicide. Judge Almerighi of Italy later concluded that two Mafia
men contracted for the murder, a Calvi employee set him up, and a
Grand Master of the P2 Masonic Lodge in Rome, paid the fee. All their
names are available on the internet. Bishop Marcinkus was protected
by his church and died in 2006 without ever facing a criminal court.
At least two books suggest that he and his criminal network may have
been responsible for the early death of the saintly Pope John Paul 1
in September 1978 after a reign of only 33 days.

Roberto Calvi, Italian
banker, killed (apparently) by the Mafia
Agha Hasan Abedi, a Pakistan national, founded the
Bank of Commerce International, or BCCI in the 1970’s, and with his
partner, Swaleh Naqvi, constructed an international web of branches
designed among other things to evade regulation and government
control. It specialised in a bewildering variety of criminal
behaviour, from fraud and money laundering, to tax evasion and arms
traficking. Prominent officials in 73 countries were bribed to obtain
their cooperation and protection. BCCI did business with customers as
varied as the late CIA Director, Bill Casey, and Manuel Noriega of
Panama. It collapsed in 1991 with debts of over $15 billion. Those
blamed for not stopping BCCI earlier, included the Bank of England,
Price Waterhouse, and Abu Dhabi.
Neil Bush, brother of President George W Bush, was
one of the senior partners and managers of Savings and Loan banks in
the USA. This huge organisation was cleverly constructed and
cynically operated to benefit from loose regulatory controls and
generous Federal Insurance cover, to lend to clients and cronies
through labyrinthal and untracable pathways, moneys which in most
cases could not be recovered. One official, James Fail, invested only
$1,000 of his own money to purchase 15 failing S & L banks, and was
reimbursed with $1.85 million in Federal subsidies. This was perhaps
one of the largest ‘milkings’ of a Federal cow in America’s history, -
except that it was the ordinary saver and the taxpayers who footed the
bill. Believed to be involved in the whole scam business were a
Houston group of influential persons that included George Bush senior,
his other son, Governor Jeb Bush, former Secretary of State James
Baker, and some Senators. George Bush senior delayed investigations
into S & L till after the 1988 election, thus raising its collapse
cost to the US taxpayer from $20 billion to $150 billion. One S & L
chief got just 3 ½ years for theft of $8.7 million. Most other
culprits escaped with barely a slap on the wrist.
David Walsh was the founder and CEO of Bre-X a
Canadian mining company that claimed to have discovered enormous gold
deposits around Busang river in Kalimantan, Indonesia. The fraudulent
reports were concocted by John Felderhof and Michael de Guzman, the
company’s chief mining engineers. Attracted by global publicity and
the promise of huge profits, 40,000 mainly Canadian investors put over
$3 billion of their savings into the company. But the gold report was
a hoax, and they lost everything. BRE-X filed for bankruptcy in
1997. David Walsh, who lived in the Bahamas, died suddenly at 52
years of age, and Michael de Guzman, a Philippine citizen, reportedly
jumped out of a helicopter over the Borneo jungle. John Felderhof who
lived in the Cayman Isles, was left to face the courts and the
thousands of deceived investors.
Callisto Tanzi, founder of the Italian long life
milk company, Parmalat, together with his financial directors, Fausto
Tonna and Luciano Del Soldato, were tried for massive fraud involving
a Bank of America subsidiary in the Cayman Islands. The company
collapsed in 2004 with debts variously estimated at between 4 and 13
billion Euros. Auditors and senior bank officers in a number of
countries were also implicated. The government of Silvio Berlusconi
may also have been involved in covering up or protecting the company
in some ways.

Parmalat,
the Italian milk company that
collapsed with debts from corruption, of 4 to 13 billion Euros.
Kenneth Lay, chairman of Enron, headed an enormous
corporation that indulged in fraud and deception to an unprecedented
degree. He was charged with 11 criminal counts including conspiracy,
securities fraud and bank fraud. Enron’s accounting firm, Arthur
Andersen was also indicted. It was said that it turned to crime to
keep a crooked client happy. Many of Enron’s senior personnel were
close friends of the Bush administration, and big donors to its
political campaigns. Also under investigation was the politically
influential Herbert S ‘Pug’ Winokur, chairman of the Enron finance
committee. Testifying before Congress he denied fraud. The company’s
criminal activities cost investors $30 billion in stock losses.
Kenneth Lay has since died, and his Vice Chairman Clifford Baxter was
shot in January 2002. Some say both deaths were a relief to senior
administration figures connected to Enron. Lay’s lawyers are trying
to have his conviction wiped off the record. That move is strange,
and it raises a suspicion among conspiracy theorists that perhaps he
did not die, but simply disappeared and might reappear after some time
when the public has lost most of the memories of the fraudulent
crimes. At any rate the courts have declared that his family is now
free to keep his ill-gotten gains. Other more troubling suspicions
are being raised about Enron’s links to White House foreign and energy
policy and the huge but strange energy deal with Dubhol, Bombay. More
will no doubt emerge. Now Enron’s former CEO Jeffrey Skilling has
been given a 24 year sentence – the first really heavy penalty on the
corporate criminals.
Below are
some more characters in the rogue’s gallery of fraud and manipulation:
Michael
Milken, the ‘junk bond’ king, lost $650 million of investors’ money in
1989.
Nick Leeson lost over $1 billion by incompetent
trading, and destroyed Barings Bank in 1995. In 1999 this hero was
paid $100,000 to speak at a business conference in Holland.
Toshihule Iguchi of the Daiwa Bank, lost $1.1
billion over 12 years while dealing in treasury bonds. He claimed in
1995 that superiors encouraged him to hide the losses.
Peter Young, a fund manager with Morgan Grenfell,
lost over $600 million by 1996, through holding companies and dubious
loans and investments.
Yasuo Hamanaka, copper trader, lost the Sumitomo
corporation $2.6 billion over 10 years to 1996. He was jailed for 8
years. (That works out at $300 million per year !)
Bernie
Ebbers was CEO of WorldCom, that inflated profits and engaged in false
accounting till its collapse in 2002 with $3.85 billions of debt. He
was jailed for 25 years, like Skilling of Enron, one of the few to get
a long sentence. He could not have had any political friends!

Bernie Ebbers, CEO of WorldCom. False
accounting in that corporation led to debts of $ 3.85 billion. One of
the few financial culprits to receive a heavy sentence, he must have
had few friends in senior positions in government or the judiciary. |
The way modern judicial
systems treat big crooks and small offenders, is eloquently described by
Robert McChesney in his book, Rich Media, Poor Democracy : “Blue
collar crime generates harsh sentences while white collar crime (almost
always for vastly greater amounts of money), gets kid gloves treatment by
comparison. In 2000 for example, a Texan man received sixteen years in
prison for stealing a Snickers candy bar, while at the same time, four
executives at Hoffman-LaRoche Ltd. were found guilty of conspiring to
suppress and eliminate competition in the vitamin industry, in what the
Justice Department called perhaps the largest criminal antitrust
conspiracy in history. The cost to consumers and public health was nearly
immeasurable. The four executives were fined from $75,000 to $350,000 and
received prison terms ranging from three to four months.” How can
ordinary people have confidence in a national justice system when the
‘çream’ of society behaves like those mentioned above? - And when justice
is obviously not impartial, and those occupying high office who may not
have been involved in illegalities, refuse to prosecute, or to release
information from investigations conducted with taxpayers money, - what are
the general public to think?
Our Judicial and Penal Systems
My impressions of the fairness and decency of our police
took an early knock when one New Year’s eve, I and a friend came across a
drunk man lying in a semi-conscious condition, in a street near the
harbour. It was a dry but bitterly cold night, and we assumed that the
man would freeze to death or die of exposure if he remained there. We
were just teenage boys and were not sure what the correct course of action
should be, but as the Police Station was just 200 yards up the road, we
thought it would be as good a place as any to take him for shelter. Our
reception was less than friendly. The sole officer on duty must have been
hoping for a quiet night, and resented having the responsibility for a
drunk thrust upon him. Apparently he knew the man, who was not local. We
had to stay while the policeman went through the routine of searching the
man’s pockets and recording the few possessions and little bit of money he
had. This was carried out with little respect for the person, and with
considerable rough handling by the officer. He then removed the fellow’s
shoes, belt and tie, and threw him into a cell, returning only to toss a
blanket in after him. No doubt the treatment was much better than such a
man would have received in most other countries, but to me it was
strangely heavy-handed given that he had committed no crime other than to
put himself in a position of danger in his drunken stupor. I guess I was
just very young and naïve, but I determined then that if I ever found a
person in similar vulnerable circumstances, police stations would be well
down my list of possible places of refuge.

Barlinnie prison, Scotland
Years later I was to visit
prisons in Britain, Africa, and the Far East, and to see first hand how
these recipients of justice are treated. We lived not far from Saughton
prison in Scotland, and I used to visit Peterhead prison with church
ministry teams. I saw prisons in African states, and in Yemen, Thailand,
Indonesia, the Philippines and Italy. When I visited Yemen, prisoners
were often allowed out with leg irons and shackles on, to forage for food
as best they could. In one provincial capital in Thailand, I witnessed
prisoners emerging from court, chained hand and foot, and put onto prison
transport vans to the sound of weeping from mothers, sisters and
relatives.

Young man from Britain,
imprisoned in Bangkok’s notorious prison for drug offenders.
Now, I have no doubt that
imprisonment is necessary for men of violence. One lovely girl I knew at
school was later murdered in Canada by a prisoner on parole who she took
pity on and allowed to work in her garden. But that man was also mentally
ill. It is also clear that there has to be a strict regime to control
large numbers of potentially dangerous criminals, and that such men have
forfeted the right to many comforts. That I accept. However, it seems to
me, after much thought and some study of the subject, that prison itself
accomplishes little and costs a lot. In the case of young offenders, it
can inform and equip them for even more and worse criminal activity.

Children incarcerated in a
Manila prison

My own conclusion is that
imprisonment should be used only for those that constitute a danger to the
public, - namely the violent and abusive. And even with them there has to
be a better approach to mental and emotional health than our system can
offer at present. Those who offend due to drug addiction, or who are
simply addicts, should not be housed with other criminals, - especially
the young. Our prisons are currently over-crowded, and the system can
barely cope. Reducing numbers would save the country considerable
unnecessary cost. We need another Elizabeth Fry, - the Quaker lady
who pioneered prison reforms.

Elizabeth Fry, the great
Quaker lady who pioneered prison reform and relief for the poor and
homeless.
That severe sentences with
no balancing rehabilitative efforts only drive young people into becoming
hardened criminals through the brutality and the despair it produces, is
surely evident by the American experience. The BBC documentary
“Prisoners of Katrina”, lifted the lid on all that was wrong and
corrupt in the judicial system of the USA – particularly in Louisiana.
What viewers saw was reminiscent of the kind of justice that existed in
the least democratic and less civilized states in the world. In the words
of the BBC narrators, the system of justice was “bankrupt”. Many
of those who suffered appalling conditions in the New Orleans prisons, and
who had their records destroyed for ever, were simply awaiting trial, and
often for as little as a traffic violation or non-payment of a fine. Most
were black and poor, though some white prisoners also suffered. But they
were incarcerated in crowded cells alongside murders and rapists. The
episode was reminiscent of the kind of justice prevailing in the mock
trials of white murderers of black people in the southern states until the
time of Martin Luther King and the Civil Rights Legislation.

The sports dome in New
Orleans that became a prison for victims
of the Katrina storm

Katrina victims in
Louisiana, USA
Now, no doubt some will
argue that a ‘soft’ approach will be ineffective, and that one must wield
a big stick. My answer would be – take a look at the USA and its penal
system before you tell me that a brutal response works. Then others will
ask for an example of a country where the soft approach yielded good
results. I will answer – Australia. From 1788 to 1867, Britain shipped
over 160,000 convicted criminals to Australia. Not all were guilty of
murder or violence, - many had committed petty offences. But off to the
colony they were sent, in appalling conditions, and under brutal
supervisors. The territory then had a series of military governors who
took a “hang them and flog them” approach to the criminal immigrants who
were assigned to whatever work their keepers desired. They were also
contracted out like slaves to the free settlers who could administer
corporal punishment as they thought fit.
One of the Governors with
a reputation for harsh discipline was Captain William Bligh of the
“Bounty” fame. There have been attempts in recent days to
rehabilitate Bligh and to present him as a stern but decent officer who
had to mete out the prescribed punishments of his day. If the Bounty
mutiny was the only such one in his career, that might be plausible. But
it was not. Some of his New South Wales colonists rebelled |